Finance Act 2015

13 After section 25 insert—

“25ZA Deemed disposal of UK residential property interest under section 25(3)

(1) This section applies if, ignoring subsections (3) and (4)—

(a) a gain or loss would accrue to a person on a disposal of a UK residential property interest deemed to have been made by virtue of section 25(3), and

(b) on the assumptions in subsection (2), that gain or loss would be an NRCGT gain chargeable to, or an NRCGT loss allowable for the purposes of, capital gains tax by virtue of section 14D (see section 57B and Schedule 4ZZB).

(2) The assumptions are—

(a) the disposal is a non-resident CGT disposal, and

(b) if the person is a company, any claim which the company could make under section 14F is made.

(3) No gain or loss accrues to the person on that disposal.

(4) But, on a subsequent disposal of the whole or part of the interest in UK land which is the subject of the disposal mentioned in subsection (1)(a), the whole or a corresponding part of the gain or loss which would have accrued to the person were it not for subsection (3)—

(a) is deemed to accrue to the person (in addition to any gain or loss that actually accrues on that subsequent disposal), and

(b) (if that would not otherwise be the case) is to be treated as an NRCGT gain chargeable to, or an NRCGT loss allowable for the purposes of, capital gains tax by virtue of section 14D accruing on a non-resident CGT disposal.

(5) A person may make an election for subsections (3) and (4) not to apply in relation to the disposal mentioned in subsection (1)(a).

(6) If the person is a company, such an election must be made within 2 years after the day on which the company ceases to carry on a trade in the United Kingdom through a branch or agency.

(7) In this section, “interest in UK land” has the meaning given by paragraph 2 of Schedule B1.”